Amtrak 2014 Annual Report Download - page 68

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1509-1694994 60
12. Postretirement Employee Benefits (continued)
Weighted-average assumptions used to determine net periodic benefit cost for the years ended
September 30, 2014 and 2013 are as follows:
Pension Benefits Other Benefits
2014 2013 2014 2013
Discount rate 5.18% 4.35% 5.18% 4.35%
Expected long-term return on assets 7.50% 7.50% N/A N/A
Rate of compensation increase 4.20% 4.20% N/A N/A
Assumed health care cost trend rates are as follows:
September 30,
2014 2013
Healthcare cost trend rate assumed for next year 7.50%–8.50% 7.75%–8.75%
Rate to which the cost trend rate is assumed to decline
(the ultimate trend rate) 5.00% 5.00%
Year that the rate reaches the ultimate trend rate 2029 2029
Assumed health care cost trend rates have a significant effect on the amounts reported for the
other defined benefit post retirement plans. A one-percentage-point change in assumed
healthcare cost trend rates would have the following effects on the Other Benefits plans
(in thousands):
1%
Increase
1%
Decrease
Effect on total of service and interest cost component $ 19,881 $ (14,530)
Effect on postretirement benefit obligation 241,895 (161,452)